Following a challenging period in 2022, Merchant Bank of Sri Lanka & Finance Plc (MBSL), a subsidiary of Bank of Ceylon, has demonstrated remarkable resilience and fortitude, closing the year 2023 with a modest Profit Before Tax (PBT) of Rs. 68 million, compared to a loss of Rs. 657 million in 2022, marking an increase of 110%. The company ended the year with a Profit After Tax (PAT) of Rs. 20.8 million, compared to an after-tax loss of Rs. 496 million in 2022, reflecting a growth of 104%.<\/p>\n\n\n\n
The company recorded an income of Rs. 7,478 million, representing a growth of 14.3% compared to Rs. 6,543 million in the previous year. This growth was underpinned by strategic initiatives adopted to navigate through a difficult economic period. The Net Interest Margin (NIM) slightly decreased to 5.55% from 5.85% due to interest rate volatility. A key highlight of the year was the reversal of Rs. 25 million from impairments, indicative of a significant improvement in loan portfolio quality and the effectiveness of its risk management initiatives. Additionally, the net gain from financial instruments at fair value through profit and loss amounted to Rs. 559 million, compared to a loss of Rs. 132 million the previous year.<\/p>\n\n\n\n
Net trading income grew substantially by 3187% to Rs. 120 million, primarily due to an increase in gain on sales of Treasury bills by Rs. 108 million. Operational efficiencies and prudent cost management resulted in a mere 1.9% increase in total operating expenses compared to the previous year.<\/p>\n\n\n\n
MBSL\u2019s total assets grew to Rs. 33.7 billion, reflecting an increase of 7.9% compared to Rs. 31.2 billion in 2022. The fixed deposit and savings base also grew by 8.2% to Rs. 25.4 billion from Rs. 23.5 billion, demonstrating MBSL\u2019s strong liquidity position and depositor confidence in the company.<\/p>\n\n\n\n
Another significant achievement during the year was the reduction of the Net Non-Performing Loan (NPL) ratio to 6.53%, compared to 8.87% the previous year. Contributions to the government by way of Value Added Taxes and Income tax increased by 166% compared to the previous year.<\/p>\n\n\n\n
MBSL\u2019s Capital Adequacy Ratios have improved significantly and stand well above the required regulatory limits, with Tier 1 CAR at 14.84% while the Total Capital Ratio stands at 18.35%.<\/p>","protected":false},"excerpt":{"rendered":"
Following a challenging period in 2022, Merchant Bank of Sri Lanka & Finance Plc (MBSL), a subsidiary of Bank of Ceylon, has demonstrated remarkable resilience and fortitude, closing the year 2023 with a modest Profit Before Tax (PBT) of Rs. 68 million, compared to a loss of Rs. 657 million in 2022, marking an increase […]<\/p>\n","protected":false},"author":1,"featured_media":729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-events"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t